- The new set of regulations will allegedly revolve around some areas like stablecoins, crypto exchanges, and business entry regulations which are yet to be unveiled.
- In this current scenario, the crypto laws of South Korea only allow retail investors having verified real-name accounts to trade.
- South Korea is looking for mollifying restrictions on corporate crypto trading and plans to slowly issue real-name accounts to institutional investors.
The financial regulator of South Korea, prominently known as the Financial Services Commission has now reportedly started working on the second phase of the crypto rules to enhance user protection, as reported by a local news channel, EDaily.
The Vice Chairman of the Financial Services Commission, Kim So-young, said that this step to elevate with phase two comes as the global crypto market witnesses quick alterations having mixed feelings of confidence and uncertainty.
The new set of regulations
The first crypto regulation of South Korea referred to as the Virtual Asset User Protection Act, was put into action in July 2024. It characterizes virtual assets, sets regulations for user protection, aims against unfair trade practices, and sketches penalties.
The new set of regulations will allegedly revolve around some areas like stablecoins, crypto exchanges, and business entry regulations which are yet to be unveiled. The FSC allegedly plans to work with different government agencies to conclude the second phase of the law by mid of this year, and the precise date has not been set.
At the same time, South Korea is looking for mollifying restrictions on corporate crypto trading and plans to slowly issue real-name accounts to institutional investors. This step will permit firms, initiating with non-profit organizations, to open real-name accounts on crypto exchanges.
What did the Chairman say?
In this current scenario, the crypto laws of South Korea only allow retail investors having verified real-name accounts to trade. At the same time, there is no official ban on institutional investors. Banks have been suggested not to issue real-name accounts to corporations.
In January last year, the Chairman of the South Korean Exchange, Jeong Eun-bo, revealed that the trading platform wants to inspect crypto spot ETF approval this year as reports show that the FSC also wants to permit firms to introduce security token offerings.
During the speech at the Securities and Derivatives Market Opening Ceremony this year, Jeong revealed that the exchange will metric overseas cases for new businesses like cryptocurrency ETFs and inspect new areas in the capital markets.
